TaxTMI 
TaxTMI 
What are the provisions & rate applicable for hotel & Resturant industry
Wharther a Service Reciepient can take credit for amount paid to hotels
Who can charge tax@5% and who can charge @18%
Hotel & Resturant services
23 Nov 2018 
1 Reply 
1253 Views Asked by
GST rates for hotel and restaurant services vary by establishment type and tariff, affecting input tax credit eligibility.
GST rates for hotel and restaurant services are differentiated by establishment type and room-tariff bands, with standalone restaurants at a lower rate and restaurants in hotels subject to rate classification tied to hotel room tariffs; hotel accommodation receives graded rates including an exemption band. Input tax credit is available for hotel services where supplier and recipient are in the same state, and restaurant service credit is permitted when used to make further restaurant supplies but not when used for other purposes. (AI Summary)
GST rates for hotel and restaurant services are differentiated by establishment type and room-tariff bands, with standalone restaurants at a lower rate and restaurants in hotels subject to rate classification tied to hotel room tariffs; hotel accommodation receives graded rates including an exemption band. Input tax credit is available for hotel services where supplier and recipient are in the same state, and restaurant service credit is permitted when used to make further restaurant supplies but not when used for other purposes. (AI Summary)